The Sensex and investor wealth posted their quickest rises, reaching record highs on Monday thanks to foreign fund buying. The index crossed the 65,000 threshold for the first time, rising from the 64,000 level in just one session, even as the value of Indian stocks on the BSE crossed the 300 lakh crore threshold in just over two years after surpassing the 200 lakh crore mark. For the third session in a running, the Sensex reached an all-time high on Monday as it increased by about 1%, or 486 points, to 65,205, driven by advances in Reliance, ITC, and the HDFC twins. Early in the day, the Sensex crossed the 65,000 milestone thanks to encouraging signals from US stock markets.
Analysts claim that continuous buying by foreign investors is a major factor in the recent rise in the value of Indian stocks. Foreign institutional investors have made net equity investments totaling Rs. 88,256 crores in the first half of 2023. These investors sold equities in 2022 for more than Rs 1.2 lakh crore.
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BSE Records High Numbers of Sensex:
The Sensex has increased by more than 13% since its March 24 low of 57,527. The Sensex has increased by about 7% year to date, compared to the S&’s 16% increase and the Dow’s 4% increase. The market capitalization of the BSE, which measures investor wealth, increased by about Rs 2 lakh crore on Monday to settle at Rs 301 lakh crore. This corresponds to almost $3.7 trillion, placing India between France ($3.3 trillion) and Hong Kong ($5.1 trillion) in terms of market valuation.
Apart from global issues, economists said steady corporate results and strong macroeconomic fundamentals have backed the rally. Markets have benefited from a stable currency and moderated inflation. On Monday, the rupee gained 8 Paise to settle at 81.96 against the dollar.
Investor wealth has increased by Rs 15 lakh crore so far this year. The increase in the BSE market cap occurred despite a about Rs 10-lakh-crore decline in the value of Adani equities over the same time period following a negative report by US short-seller Hindenburg. Along with an influx of foreign money, last week’s rain that covered the majority of the nation also boosted investor confidence. According to Shrikant Chouhan of Kotak Securities, “India is performing well on most economic parameters, and that could strengthen the fund flows in the near term.”
Market participants noted that while the rally may continue for a brief period, valuations in several sectors have begun to sink.
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